By Yoruk Bahceli and Dhara Ranasinghe
LONDON (Reuters) – Huge debt piles among the world’s biggest economies are starting to unnerve financial markets again, as elections cloud the fiscal outlook.
French bonds took a beating after a surprise election and hefty spending plans caused alarm. U.S. debt dynamics are in focus ahead of a November presidential election.
A debt crisis is not the base case, but investors are alert to the risk of looser purse strings sparking market stress.
“Deficits are back in focus,” said Guy Miller, chief market strategist at Zurich Insurance Group.
“There needs to be more attention placed on not just the debt, but how to generate a growth dynamic – particularly in Europe,” he added.
Here’s a look at five big developed economies on the worry list:
1/ FRANCE
A surprise election was a rude awakening to investors who had previously looked past France’s creaking public finances. With a budget gap at 5.5% of output…
